On Tuesday, China’s leaders announced a bold goal of achieving 5% economic growth by 2024, promising to prioritize stability while making progress despite a slow economy and low confidence from investors and consumers.

According to China’s official Xinhua News Agency, Chinese Premier Li Qiang presented his initial work evaluation since taking on the second-highest position in China in October, recognizing the presence of opportunities, risks, and obstacles in China’s current environment. However, he emphasized that the advantageous conditions still outnumber the unfavorable factors.

In light of sluggish global economic growth and the absence of a stable basis for China to maintain its economic growth, Li stated that Beijing will persist in implementing “proactive fiscal policies and cautious monetary policies” to address the numerous economic challenges ahead.

Li states that the Chinese government intends to release approximately $139 billion of specialized treasury bonds in the near future. This will provide assistance to local governments that are struggling with debt while continuing to prioritize “high-quality growth” through innovative methods.

According to reports from China’s state-run Xinhua news agency, Li expressed plans to utilize resources from across the nation to advance the creation of a modern industrial system, hasten the progress of new productive forces, and prioritize innovation as a driver of economic growth.

Li’s speech comes as China faces a long list of economic challenges, including an ongoing real estate crisis, low consumer and household confidence, and weak external demand. While Li promised to expand domestic demand and increase efforts to attract foreign investment, some economists say that unless China initiates fundamental economic reforms, these plans may only be “policy slogans.”

According to Wang Kuo-chen, a Chinese economy expert at the Chunghwa Institute for Economic Research in Taiwan, many of China’s key industries are managed by state-owned enterprises and their ability to use investments effectively is fairly low. This information was shared over the phone during an interview with VOA.

According to him, despite China’s efforts to boost assistance for private companies, state-owned and military enterprises will still dominate key industries in the country, making it challenging for the government to overcome the existing economic crisis.

Wang informed VOA that if Beijing does not substantially alter its economic structure, it will face challenges in implementing new plans for economic growth, such as focusing on improving quality and increasing productive capabilities.

Despite concerns from certain economists, other experts predict that the Chinese government will remain focused on investing in technological advancement in the coming years.

Wang Hsin-hsien, a specialist in Chinese politics at National Chengchi University in Taiwan, explained in a phone interview with VOA that the government’s work report is centered on advancing modernization using unique Chinese approaches and developing new productive forces.

Wang commented that a significant portion of Li’s speech centered around technological advancement, possibly in response to the US-led efforts to limit China’s access to key technologies like advanced semiconductors. He added that these policy ideas are directly tied to the challenges that China is currently facing on the international stage.

Besides providing an overview of Beijing’s economic plans for the upcoming year, Li Qiang also emphasized the importance of enhancing social security and services in China. This includes implementing a holistic approach to address the challenges posed by the country’s increasingly aging population and implementing measures to combat youth unemployment.

The Chinese government emphasized the importance of protecting national security and maintaining social stability following the passing of amendments to the state secrets law by the National People’s Congress just before the “Two Sessions.” In his speech, Li expressed the necessity of upholding the overall concept of national security and improving the national security system.

Analysts suggest that Li’s address indicates that the Chinese government continues to prioritize security. Ruihan Huang, a senior associate at the research institution MarcoPolo in Chicago, shared statistics that revealed the term security was referenced 28 times in this year’s government work report, a significant increase from the previous year’s three mentions.

As Li emphasized the significance of giving priority to safeguarding national security in his address, certain scholars informed VOA that this style of governing results in economic costs for China. Ian Chong, a political scientist at the National University of Singapore, shared with VOA via phone that when a government dedicates additional resources to security, it inevitably takes away from other areas, such as economic growth, at least in the short run.

Some experts view Li’s speech and China’s government work report as expected, but the government’s cancellation of the premier’s press conference during the annual legislative meeting is unprecedented. This decision highlights the decreasing authority held by the premier within the current political system in China.

According to Dali Yang, a political scientist at the University of Chicago, the Chinese government has changed the role of premier to focus on implementing decisions made by the Politburo, a top decision-making group, under the leadership of the general secretary. This information was communicated over the phone to VOA.

According to current understanding, the opinions expressed by Li Qiang during his Tuesday speech suggest that Chong in Singapore believes that the way China is viewed by the rest of the world will probably not change in the near future.

“In the end, investors desire assurance and for this assurance to exist, there must be greater transparency in data and easy compliance,” he stated in an interview with VOA. “Although Li Qiang emphasizes confidence, the necessary instruments to support confidence are lacking.”

Source: voanews.com